An Example of a Judgment in Accounting for Accounts Receivable

question 126

Multiple Choice

An example of a judgment in accounting for Accounts Receivable is ________.

• A) the percentage of credit sales that may be uncollectible
• B) the amount a customer paid during the previous month
• C) the decision whether to extend credit to a new customer
• D) the percentage that may be deducted to calculate a sales discount

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals are less likely to take action or feel responsible in the presence of a large group of people.

Prosocial Behaviour

Voluntary behavior intended to benefit another, such as helping, sharing, or providing comfort, which is motivated by empathy, moral principles, or a desire for social approval.

Mob Violence

Acts of aggression and violence carried out by a large group of people acting together.

Bystander Effect

The bystander effect is a social psychological phenomenon where individuals are less likely to offer help to a victim when other people are present.